Question

You deposit $200 in an account earning 3.5% simple interest how long will it take for the balance of the account to be $221

Answer 1

It takes 3 years for the balance of account to be $ 221

Solution:

From given information,

Principal = $ 200

Rate of interest = 3.5 %

Amount after "n" years = $ 221

To find: number of years

In simple Interest,

Simple interest = amount earned - principal

Simple interest = 221 - 200 = 21

Thus simple interest earned is $ 21

The formula for simple interest is given as:

$simple\ interest = \frac{ p \times n \times r}{100}$

Where,

p is the principal

n is the number of years

r is the rate of interest per annum

Substituting the given values in formula,

$21 = \frac{200 \times n \times 3.5}{100}\\\\21 = 2n \times 3.5\\\\n = \frac{21}{7}\\\\n = 3$

Thus it takes 3 years for the balance of account to be $ 221